One more shot: Liquor privatization may be on fall ballot

An architect of one of the two initiatives that voters rejected last year that would’ve privatized liquor sales in Washington state is giving it another shot.

Stefan Sharkansky, who drafted Initiative 1100, is sponsoring another citizen ballot measure, the secretary of state’s office said Friday. To qualify for the November ballot, backers of the new Initiative 1157 (PDF) would have to collect more than 241,000 signatures of registred voters by July 8. If approved by voters, I-1157, would get the state out of the booze business and allow spirits to be sold “only to strictly regulated vendors who are already proven to be responsible sellers of beer and wine.” Also, the current liquor taxes and “markup” on liquor sales, would remain in place, with tax revenues going back to the state.

One of the criticisms last year of I-1100 and a competing privatization measure – I-1105 – was that privatizing spirits sales would impact state revenues at a time of cratering tax collections. The state faces a $5.1 billion deficit for 2011-13.

Sharkansky’s new measure – like I-1100 – would eliminate Washington’s “three-tiered” liquor control system, which segregates the manufacturing, distributing and retailing of spirits. Big box retailers like Costco, the financial backers of I-1100, want to get rid of that system.

Right now Washington is one of 18 “control states,” places where the government runs the sale and distribution of liquor. Washington has had this system since 1933, and state officials say it results in lower per-capita alcohol consumption and a reliable stream of tax revenue for government.

In 2009, the state Liquor Control Board said taxes, markup and fees provided more than $332.7 million for programs and services throughout the state. Of that, $199 million went to the state’s general fund, almost $63 million went to cities and counties and $49 million went to help pay for the state’s health insurance for the poor.